Notice2026-01526
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 404, Series of Options Contracts Open for Trading, To Amend the Short Term Option Series Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 27, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 17 (Tuesday, January 27, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 17 (Tuesday, January 27, 2026)]
[Notices]
[Pages 3596-3600]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01526]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104660; File No. SR-SAPPHIRE-2026-03]
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Exchange Rule 404, Series of Options Contracts Open for Trading, To
Amend the Short Term Option Series Program
January 22, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 16, 2026, MIAX Sapphire, LLC (``MIAX Sapphire'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Short Term Option Series Program
to permit the listing of up to two Monday and Wednesday expirations for
options on certain individual stocks or Exchange-Traded Fund Shares.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings">https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings</a>, and at the Exchange's principal office.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Interpretation and Policy .02 to
Exchange Rule 404, ``Series of Options Contracts Open for Trading.''
Specifically, the Exchange proposes to permit the listing of up to two
Monday and Wednesday expirations for options on certain individual
stocks or Exchange-Traded Fund Shares (collectively ``Qualifying
Securities''). This proposed rule change is based on a similar proposal
submitted by Nasdaq ISE, LLC (``ISE'') and approved by the
Commission.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 104624 (January 16,
2026)(Self-Regulatory Organizations; Nasdaq ISE, LLC; Order
Approving a Proposed Rule Change, as Modified by Amendment No. 1, to
Amend the Short Term Option Series Program to List Qualifying
Securities)(SR-ISE-2025-15).
---------------------------------------------------------------------------
Currently, as set forth in Interpretation and Policy .02 to
Exchange Rule 404, after an option class has been approved for listing
and trading on the Exchange as a Short Term Option Series,\4\ the
Exchange may open for trading on any Thursday or Friday that is a
business day (``Short Term Option Opening Date'') series of options on
that class that expire at the close of business on each of the next
five Fridays that are business days and are not Fridays in which
standard expiration options series, Monthly Options Series, or
Quarterly Options Series expire (``Friday Short Term Option Expiration
Dates''). The Exchange may have no more than a total of five Short Term
Option Expiration Dates (``Short Term Option Weekly Expirations'').
Further, if the Exchange is not open for business on the respective
Thursday or Friday, the Short Term Option Opening Date for Short Term
Option Weekly Expirations will be the first business day immediately
prior to that respective Thursday or Friday. Similarly, if the Exchange
is not open for business on a Friday, the Short Term Option Expiration
Date for Short Term Option Weekly Expirations will be the first
business day immediately prior to that Friday.
---------------------------------------------------------------------------
\4\ The term ``Short Term Option Series'' means a series in an
option class that is approved for listing and trading on the
Exchange in which the series is opened for trading on any Monday,
Tuesday, Wednesday, Thursday or Friday that is a business day and
that expires on the Monday, Tuesday, Wednesday, Thursday, or Friday
of the next business week, or, in the case of a series that is
listed on a Friday and expires on a Monday, is listed one business
week and one business day prior to that expiration. If a Tuesday,
Wednesday, Thursday or Friday is not a business day, the series may
be opened (or shall expire) on the first business day immediately
prior to that Tuesday, Wednesday, Thursday or Friday, respectively.
For a series listed pursuant to this section for Monday expiration,
if a Monday is not a business day, the series shall expire on the
first business day immediately following that Monday. See Exchange
Rule 100.
---------------------------------------------------------------------------
Additionally, the Exchange may open for trading series of options
on the symbols provided in Table 1 of Interpretation and Policy .02 to
Exchange Rule 404 that expire at the close of business on each of the
next two Mondays, Tuesdays, Wednesdays, and Thursdays, respectively,
that are business days beyond the current week and are not business
days in which standard expiration options series, Monthly Options
Series, or Quarterly Options Series expire (``Short Term Option Daily
Expirations'').\5\ For those symbols listed in Table 1, the Exchange
may have no more than a total of two Short Term Option Daily
Expirations beyond the current week for each of Monday, Tuesday,
Wednesday, and Thursday expirations, as applicable, at one time.
---------------------------------------------------------------------------
\5\ As set forth in Table 1 of Interpretation and Policy .02 to
Exchange Rule 404, the Exchange currently permits expirations in
SPY, IWM, QQQ on Mondays, Tuesdays, Wednesdays and Thursdays. Also,
the Exchange permits expirations in GLD, SLV and TLT on Mondays and
Wednesdays. Finally, the Exchange permits expirations in USO and UNG
on Wednesdays.
---------------------------------------------------------------------------
Proposal
At this time, the Exchange proposes to expand the Short Term Option
Series Program to permit certain Qualifying Securities to list up to
two Monday and Wednesday expirations in addition to the Friday weekly
expiration. The Exchange proposes to define Qualifying Securities as
eligible individual stocks or Exchange-Traded Fund Shares, which are
separate and apart from the
[[Page 3597]]
symbols listed in Table 1, that have received approval to list
additional expiries on specific symbols, that meet the following
criteria on a quarterly basis:
(1) an underlying security, as measured on the last day of the
prior calendar quarter, must have:
(A) a market capitalization of greater than 700 billion dollars for
an individual stock based on the closing price,\6\ or
---------------------------------------------------------------------------
\6\ The closing price and the opening price shall be that of the
primary exchange where the security is listed.
---------------------------------------------------------------------------
(B) Assets under Management (``AUM'') greater than 50 billion
dollars for an Exchange-Traded Fund Share based on net asset value
(``NAV'');
(2) monthly options volume, as measured by sides traded in the last
month preceding the quarter end, of greater than 10 million options;
(3) a position limit of at least 250,000 contracts; and
(4) participate in the Penny Interval Program.
Each calendar quarter, the Exchange will apply the above criteria
to individual stocks and Exchange-Traded Fund Shares to determine
eligibility for the following quarter as a Qualifying Security.
Beginning on the second trading day in the first month of each calendar
quarter, the market capitalization of individual stocks shall be
calculated based on the closing price established on the primary
exchange on the last trading day of the prior calendar quarter and the
AUM for Exchange-Traded Fund Shares shall be calculated based on the
NAV established on the primary exchange on the last trading day of the
prior calendar quarter. The data establishing the volume thresholds
will be established by using data from the last month of the prior
calendar quarter from The Options Clearing Corporation. For options
listed on the first trading day of a given calendar quarter, the volume
shall be calculated using the last month of the quarter prior to that
trading calendar quarter.\7\ The Exchange will make the list of
Qualifying Securities available by the close of business on the first
trading day of the quarter.\8\
---------------------------------------------------------------------------
\7\ OCC data becomes available for the end of a quarter on the
first trading day of a new quarter. For example, if the Exchange
were to list Qualifying Securities in Q3 of 2025, the Exchange would
look at the volume, measured in sides, for the last month of Q2 2025
or June 2025.
\8\ The Exchange will make this information available on its
website. This information will be freely accessible to the public.
---------------------------------------------------------------------------
Eligible Qualifying Securities would be permitted to list two Short
Term Option Expiration Dates beyond the current week for each Monday
and Wednesday expiration at one time. For Qualifying Securities, the
Exchange would not list an expiry on a day when there will be an
Earnings Announcement that takes place after market close. For purposes
of this rule proposal, earnings announcements shall include official
public quarterly or yearly earnings filed with the Commission
(``Earnings Announcement'').\9\ Not listing an expiry for a Qualifying
Security on a day where there is an Earnings Announcement that takes
place after market close will avoid permitting an additional expiry on
a day where post-close price volatility may be impacted due to the
Earnings Announcement.
---------------------------------------------------------------------------
\9\ For purposes of this proposal, pre-announcements or
``guidance'' shall not be considered an Earnings Announcement.
---------------------------------------------------------------------------
Qualifying Securities that do not continue to meet the above
criteria would no longer be permitted to list Monday and Wednesday
expiries beginning on the second day of the following quarter.\10\
---------------------------------------------------------------------------
\10\ The Exchange has noted the additional expiries in a
proposed Table 2 in Interpretation and Policy .02 to Exchange Rule
404 along with the criteria for a Qualifying Security.
---------------------------------------------------------------------------
The proposed Monday Qualifying Securities expirations will be
similar to the current Monday Expirations in SPY, QQQ, and IWM (among
other symbols that may list a Monday Expiration) in Short Term Option
Daily Expirations set forth in Interpretation and Policy .02 to
Exchange Rule 404 such that the Exchange may open for trading on any
Friday or Monday that is a business day (beyond the current week)
series of options on Qualifying Securities to expire on any Monday of
the month that is a business day and is not a Monday in which standard
expiration options series, Monthly Options Series, or Quarterly Options
Series expire, provided that Monday expirations that are listed on a
Friday must be listed at least one business week and one business day
prior to the expiration (``Monday Qualifying Securities
Expirations'').\11\ In the event Qualifying Securities would expire on
a Monday and that Monday is the same day that a standard expiration
options series, Monthly Options Series, or Quarterly Options Series
expires, the Exchange would skip that week's listing and instead list
the following week; the two weeks of Monday Qualifying Securities
Expirations would therefore not be consecutive. Today, Monday
expirations in SPY, QQQ, and IWM similarly skip the weekly listing in
the event the weekly listing would expire on the same day in the same
class as a standard expiration options series, Monthly Options Series,
or Quarterly Options Series.
---------------------------------------------------------------------------
\11\ They may also trade on Fridays, as is the case for all
options series in the Short Term Option Series Program.
---------------------------------------------------------------------------
The proposed Wednesday Qualifying Securities expirations will be
similar to the current Wednesday SPY, QQQ, and IWM (among other symbols
that may list a Wednesday Expiration) in Short Term Option Daily
Expirations set forth in Interpretation and Policy .02 to Exchange Rule
404, such that the Exchange may open for trading on any Tuesday or
Wednesday that is a business day (beyond the current week) series of
options on Qualifying Securities to expire on any Wednesday of the
month that is a business day and is not a Wednesday in which standard
expiration options series, Monthly Options Series, or Quarterly Options
Series expire (``Wednesday Qualifying Securities Expirations'').\12\ In
the event Qualifying Securities would expire on a Wednesday and that
Wednesday is the same day that a standard expiration options series,
Monthly Options Series, or Quarterly Options Series expires, the
Exchange would skip that week's listing and instead list the following
week; the two weeks of Wednesday Qualifying Securities Expirations
would therefore not be consecutive. Today, Wednesday expirations in
SPY, QQQ, and IWM similarly skip the weekly listing in the event the
weekly listing would expire on the same day in the same class as a
standard expiration options series, Monthly Options Series, or
Quarterly Options Series.
---------------------------------------------------------------------------
\12\ Id.
---------------------------------------------------------------------------
The interval between strike prices for the proposed Monday and
Wednesday Qualifying Securities Expirations will be the same as those
currently applicable for SPY, QQQ, and IWM Monday and Wednesday
Expirations (among other symbols that may list a Monday or Wednesday
Expiration) in the Short Term Option Series Program.\13\ Specifically,
the Monday and Wednesday Qualifying Securities Expirations will have a
strike interval of (i) $0.50 or greater for strike prices below $100,
and $1 or greater for strike prices between $100 and $150 for all
option classes that participate in the Short Term Option Series
Program, (ii) $0.50 for option classes that trade in one dollar
increments and are in the Short
[[Page 3598]]
Term Option Series Program, or (iii) $2.50 or greater for strike prices
above $150.\14\ As is the case with other equity options series listed
pursuant to the Short Term Option Series Program, the Monday and
Wednesday Qualifying Securities Expirations series will be P.M.-
settled.
---------------------------------------------------------------------------
\13\ See Interpretation and Policy .02(e) to Exchange Rule 404.
The Exchange notes that equity options which have an expiration of
more than twenty-one days from the listing date would also be
subject to the intervals as noted within Interpretation and Policy
.02(f) to Exchange Rule 404. See also Interpretation and Policy .11
to Exchange Rule 404.
\14\ Id.
---------------------------------------------------------------------------
Pursuant to Exchange Rule 100, with respect to the Short Term
Option Series Program, if a Monday is not a business day, the series
shall expire on the first business day immediately following that
Monday. Also, pursuant to Exchange Rule 100, with respect to the Short
Term Options Series Program, a Wednesday expiration series shall expire
on the first business day immediately prior to that Wednesday, e.g.,
Tuesday of that week if the Wednesday is not a business day.
Currently, for each option class eligible for participation in the
Short Term Option Series Program, the Exchange is limited to opening
thirty (30) series for each expiration date for the specific class.\15\
The thirty (30) series restriction does not include series that are
open by other securities exchanges under their respective weekly rules;
the Exchange may list these additional series that are listed by other
options exchanges.\16\ With the proposed changes, this thirty (30)
series restriction would apply to Monday and Wednesday Qualifying
Securities Expirations as well. In addition, the Exchange will be able
to list series that are listed by other exchanges, assuming they file
similar rules with the Commission to list Monday and Wednesday
Qualifying Securities Expirations.
---------------------------------------------------------------------------
\15\ See Interpretation and Policy .02(c) and (d) to Exchange
Rule 404.
\16\ See Interpretation and Policy.02 to Exchange Rule 404.
---------------------------------------------------------------------------
With this proposal, Monday and Wednesday Qualifying Securities
Expirations would be treated similar to existing SPY, QQQ, and IWM
Monday and Wednesday Expirations. With respect to standard expiration
option series, Monday and Wednesday Qualifying Securities Expirations
will be permitted to expire in the same week in which standard
expiration option series on the same class expire.\17\ Not listing
Monday and Wednesday Qualifying Securities Expirations for one week
every month because there was a standard options series on that same
class on the Friday of that week would create investor confusion.
---------------------------------------------------------------------------
\17\ See Interpretation and Policy .02(a) to Exchange Rule 404.
---------------------------------------------------------------------------
Further, as with SPY, QQQ, and IWM Monday and Wednesday
Expirations, the Exchange would not permit Monday and Wednesday
Qualifying Securities Expirations to expire on a business day in which
standard expiration option series, Monthly Options Series, or Quarterly
Options Series expire.\18\ Therefore, all Monday and Wednesday
Qualifying Securities Expirations would expire at the close of business
on each of the next two Mondays and Wednesdays, respectively, that are
business days and are not business days in which standard expiration
option series, Monthly Options Series, or Quarterly Options Series
expire. The Exchange believes that it is reasonable to not permit two
expirations on the same day in which a standard expiration option
series, Monthly Options Series, a Quarterly Options Series would expire
because those options would be duplicative of each other.
---------------------------------------------------------------------------
\18\ See Interpretation and Policy .02(a) to Exchange Rule 404.
---------------------------------------------------------------------------
The Exchange does not believe that any market disruptions will be
encountered with the introduction of Monday and Wednesday Qualifying
Securities Expirations. The Exchange currently trades P.M.-settled
Short Term Option Series that expire Monday, Tuesday, Wednesday and
Thursday on several symbols \19\ and has not experienced any market
disruptions nor issues with capacity. Today, the Exchange has
surveillance programs in place to support and properly monitor trading
in Short Term Option Series that expire Monday, Tuesday, Wednesday and
Thursday on several symbols.\20\ The Exchange believes that it has the
necessary capacity and surveillance programs in place to support and
properly monitor trading in the proposed Monday and Wednesday
Qualifying Securities Expirations.
---------------------------------------------------------------------------
\19\ See supra note 5.
\20\ Id.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\21\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\22\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest.
---------------------------------------------------------------------------
\21\ 15 U.S.C. 78f(b).
\22\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Similar to Monday expirations in SPY, QQQ, and IWM, the proposal to
permit Monday and Wednesday Qualifying Security Expirations, subject to
the proposed limitation of two expirations beyond the current week,
would protect investors and the public interest by providing the
investing public and other market participants more choice and
flexibility to closely tailor their investment and hedging decisions in
these options and allow for a reduced premium cost of buying portfolio
protection, thus allowing them to better manage their risk exposure.
The Exchange believes that the proposed criteria for Qualifying
Securities requires individual stocks and Exchange-Traded Fund Shares
to be highly liquid. A market capitalization measured on the last day
of the prior calendar quarter based on the closing price of the
underlying, of greater than 700 billion dollars for an individual
stock, or AUM of 50 billion dollars for an Exchange-Trade Fund Share,
in conjunction with the monthly options volume requirement of greater
than 10 million options as measured by sides traded in the last month
preceding the quarter end, is very restrictive. This requirement
represents substantially less than 1% of individual stocks (only eight
(8) individual stocks currently exist as of January 1, 2025) and
substantially less than 1% of Exchange-Traded Fund Shares (only seven
(7) Exchange Traded Fund Shares currently exist as of January 1, 2025,
of which five (5) are eligible, today, pursuant to Exchange Rule 402,
to trade additional expiries) traded. Therefore, an individual stock or
Exchange-Traded Fund Share that meets aforementioned market
capitalization and volume requirements are highly liquid and could be
viewed as stable securities. The Exchange notes that with respect to
position limits, Exchange Rule 307(d)(5) provides, that ``[t]o be
eligible for the 250,000 contract limit, either the most recent six (6)
month trading volume of the underlying security must have totaled at
least 100 million shares or the most recent six-month trading volume of
the underlying security must have totaled at least seventy-five (75)
million shares and the underlying security must have at least 300
million shares currently outstanding.'' The 250,000 contract position
limit is the highest position limit by Exchange rules. Options that
qualify for the 250,000 position (and exercise) limit are highly liquid
securities that have met the stringent requirements noted in Exchange
Rule 307(d)(5) to qualify for the highest position limit.
Finally, a Qualifying Security must participate in the Penny
Interval Program. In order to qualify for the Penny Interval Program,
an options class must be among the 300 most actively traded multiply
listed option
[[Page 3599]]
classes overlying securities priced below $200.\23\ The most actively
traded options classes are included in the Penny Interval Program based
on certain objective criteria (trading volume thresholds and initial
price tests).
---------------------------------------------------------------------------
\23\ See Exchange Rule 510(c)(2). Each December OCC ranks all
multiply listed option classes based on National Cleared Volume for
the six full calendar month from June 1 through November 30 for
determination of the most actively traded option classes.
---------------------------------------------------------------------------
The number of individual stocks currently meeting all four criteria
for a Qualifying Security is eight (8) and the number of Exchange-
Traded Fund Shares currently meeting all four criteria for a Qualifying
Security that do not already have Monday and Wednesday expirations is
one (1) as of June 27, 2025. Both totals represent less than 0.2% of
all securities with options listed. The Exchange believes that since
individual stocks are the dominant constituents of the broad-based
indexes (e.g., S&P 500 Index and Nasdaq-100 Index), the improvement in
price transparency brought about by Monday and Wednesday trading will
offer Market Makers and investors better volatility pricing which will
inform trading on the related products to these indexes. The Exchange
believes that the proposed criteria for Qualifying Securities is
consistent with the protection of investors and the general public
because the criteria targets the most liquid individual stocks and
Exchange-Traded Fund Shares.
The Exchange would not list an expiry on a Qualifying Security on a
day where there will be an Earnings Announcement that takes place after
market close to avoid post-close price volatility that may arise from
the Earnings Announcement and which may impact exercise and/or
assignment decisions.
Qualifying Securities that do not continue to meet the above
criteria would no longer be permitted to list Monday and Wednesday
expiries in the following quarter, although the Qualifying Security
would potentially have two weeks of strikes already listed which will
persist. These remaining listings could continue to be traded until
they expire.
With this proposal, overall, the Exchange would add a small number
of Monday and Wednesday Qualifying Security Expirations by limiting the
addition of two Monday expirations and two Wednesday expirations beyond
the current week. The addition of Monday and Wednesday Qualifying
Security Expirations would remove impediments to and perfect the
mechanism of a free and open market by encouraging Market Makers to
continue to deploy capital more efficiently and improve displayed
market quality.\24\ The Exchange believes that the proposal will allow
Members to expand hedging tools and tailor their investment and hedging
needs more effectively in Qualifying Securities as these funds are most
likely to be utilized by market participants to hedge the underlying
asset classes.
---------------------------------------------------------------------------
\24\ Today, Market Makers are required to quote a specified time
in their assigned options series. See Exchange Rule 605.
---------------------------------------------------------------------------
Similar to SPY, QQQ, and IWM Monday and Wednesday Expirations, the
introduction of Monday and Wednesday Qualifying Security Expirations is
consistent with the Act as it will, among other things, expand hedging
tools available to market participants and allow for a reduced premium
cost of buying portfolio protection. The Exchange believes that Monday
and Wednesday Qualifying Security Expirations will allow market
participants to purchase options on Qualifying Securities based on
their timing as needed and allow them to tailor their investment and
hedging needs more effectively, thus allowing them to better manage
their risk exposure. Today, the Exchange lists other Monday and
Wednesday expirations.\25\
---------------------------------------------------------------------------
\25\ See Interpretation and Policy .02(a) to Exchange Rule 404.
---------------------------------------------------------------------------
In particular, the Exchange believes the Short Term Option Series
Program has been successful to date and that Monday and Wednesday
Qualifying Security Expirations should simply expand the ability of
investors to hedge risk against market movements stemming from economic
releases or market events that occur throughout the month in the same
way that the Short Term Option Series Program has expanded the
landscape of hedging.
There are no material differences in the treatment of SPY, QQQ and
IWM Monday and Wednesday Expirations compared to the proposed Monday
and Wednesday Qualifying Security Expirations. Given the similarities
between SPY, QQQ and IWM Monday and Wednesday Expirations and the
proposed Monday and Wednesday Qualifying Security Expirations, the
Exchange believes that applying the provisions in Interpretation and
Policy .02(a) to Exchange Rule 404 that currently apply to SPY, QQQ and
IWM Monday and Wednesday Expirations is justified.
The Exchange believes Monday and Wednesday Qualifying Security
Expirations will allow market participants to purchase options on
Qualifying Securities based on their timing as needed and allow them to
tailor their investment and hedging needs more effectively. Further,
the proposal to permit Monday and Wednesday Qualifying Security
Expirations for options on Qualifying Securities listed pursuant to the
Short Term Option Series Program, subject to the proposed limitation of
two nearest expirations, would protect investors and the public
interest by providing the investing public and other market
participants more flexibility to closely tailor their investment and
hedging decisions in the options on Qualifying Securities, thus
allowing them to better manage their risk exposure.
In particular, the Exchange believes the Short Term Option Series
Program has been successful to date and that Monday and Wednesday
Qualifying Security Expirations should simply expand the ability of
investors to hedge risk against market movements stemming from economic
releases or market events that occur throughout the month in the same
way that the Short Term Option Series Program has expanded the
landscape of hedging. Similarly, the Exchange believes Monday and
Wednesday Qualifying Security Expirations should create greater trading
and hedging opportunities and provide customers the flexibility to
tailor their investment objectives more effectively.
Finally, the Exchange represents that it has an adequate
surveillance program in place to detect manipulative trading in the
proposed option expirations, in the same way that it monitors trading
in the current Short Term Option Series for Monday SPY, QQQ and IWM
expirations. The Exchange also represents that it has the necessary
system capacity to support the new expirations. Finally, the Exchange
does not believe that any market disruptions will be encountered with
the introduction of these option expirations. As discussed above, the
Exchange believes that its proposal is a modest expansion of weekly
expiration dates for Monday and Wednesday Qualifying Security
Expirations given that it will be limited to two Monday expirations and
two Wednesday expirations beyond the current week.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
The Exchange believes that this limited expansion for Monday and
[[Page 3600]]
Wednesday expirations for options on Qualifying Securities will not
impose an undue burden on competition, rather, it will meet customer
demand. The Exchange would uniformly apply the Qualifying Security
criteria to options in individual stocks and Exchange-Traded Fund
Shares. The Exchange believes that Members will continue to be able to
expand hedging tools and tailor their investment and hedging needs more
effectively in the Qualifying Securities.
Similar to SPY, QQQ and IWM Monday and Wednesday Expirations, the
introduction of Monday and Wednesday Qualifying Security Expirations
does not impose an undue burden on competition. The Exchange believes
that it will, among other things, expand the hedging tools available to
market participants and allow for a reduced premium cost of buying
portfolio protection. The Exchange believes that Monday and Wednesday
Qualifying Security Expirations will allow market participants to
purchase options on Qualifying Securities based on their timing as
needed and allow them to tailor their investment and hedging needs more
effectively.
Further, not adding an expiry for a Qualifying Security on a day
where there will be an Earnings Announcement that takes place after
market close does not impose an undue burden on competition as the
Exchange would uniformly apply this practice to the listing of all
Qualifying Securities.
The Exchange does not believe the proposal will impose any burden
on intermarket competition, as nothing prevents other options exchanges
from proposing similar rules to list and trade Monday and Wednesday
Qualifying Security Expirations. Further, the Exchange does not believe
the proposal will impose any burden on intra-market competition, as all
market participants will be treated in the same manner under this
proposal.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative prior to 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, if consistent
with the protection of investors and the public interest, the proposed
rule change has become effective pursuant to Section 19(b)(3)(A)(iii)
of the Act \26\ and Rule 19b-4(f)(6) thereunder.\27\
---------------------------------------------------------------------------
\26\ 15 U.S.C. 78s(b)(3)(A)(iii).
\27\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \28\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\29\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. According to the
Exchange, waiver of the operative delay would allow the Exchange to
compete with at least one other exchange that has approval to list and
trade the same option series.\30\ The Commission believes that the
proposed rule change presents no novel issues and that waiver of the
30-day operative delay is consistent with the protection of investors
and the public interest. Accordingly, the Commission hereby waives the
30-day operative delay and designates the proposal operative upon
filing.\31\
---------------------------------------------------------------------------
\28\ 17 CFR 240.19b-4(f)(6).
\29\ 17 CFR 240.19b-4(f)(6)(iii).
\30\ See supra note 3.
\31\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \32\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\32\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#ee9c9b828bc38d8183838b809a9dae9d8b8dc0898198"><span class="__cf_email__" data-cfemail="2755524b420a44484a4a424953546754424409404851">[email protected]</span></a>. Please include
file number SR-SAPPHIRE-2026-03 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-SAPPHIRE-2026-03. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-SAPPHIRE-2026-03 and should be submitted
on or before February 17, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
---------------------------------------------------------------------------
\33\ 17 CFR 200.30-3(a)(12) and (59).
---------------------------------------------------------------------------
Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-01526 Filed 1-26-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on January 27, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.